Can anyone here please assist me in what other resources and challenges that I need to be aware and know before I can redevelop a block of land (with existing old weatherboard house) into two duplex or a townhouses ?

Prior to even looking at what, where, how is understanding the tax impacts. This should then guide how it is acquired and assist you with running the numbers with a accurate allowance for tax that isn't unrealistic so it scares you off attempting or just ignoring it to find profit is wiped out later. Once the basic tax issues are understood

Also important to understand following this knowledge is record keeping and apportioning issues. It can be easy but get VERY messy if you aren't organised. ie : One's you keep - Can you identify all the share of costs that include GST, one's you sell - Costs before and after GST ?

Important when starting any dev is to use experts to guide you. Broker, Tax. Legal, RE Agent, Town Planner etc. Sure it wont be free but then the mistakes wont cost you. I always like to think I add value and can save developers $ by considering strategies to address unavoidable tax. I always say you don't want to overpay or underpay tax.

From a finance perspective - the number of dwellings you decide to build on the block will dictate wether its residential lending or commercial lending. Commercial lending has its benefits but also increased costs so you certainly need to factor this in your feasibility study.

Ah I see, so in this case for tomorrow inspection of the below-attached old property site in Westmead, do I need to apply for the STCA or DA to the council before approaching my chosen builder to build new duplexes ?

I was under the impression that if once I got the land, I can then just appoint my own builder like McDonald Jones or Eden Brae to demolish the existing old house and then build 2x duplexes on top of the subdivided land.

I guess I still need to get some more approval doco's and pay some fees.

Can anyone here please assist me in what other resources and challenges that I need to be aware and know before I can redevelop a block of land (with existing old weatherboard house) into two duplex or a townhouses ?

Hi PT
Many have offered good advice, one other I would consider before starting a development is market conditions?

If there is strong demand for your product today there are no guarantees this will be the case on completion.

Its out of your control, however I would consider ways you can reduce your risk if the market changed and you could not sell at the end of the project, ie can you afford to hold? can you sell any prior to completion (OTP)?, play in lower end market, easier to sell etc.
Review debt vs cash flow/income.

I had a recent scenario where my 3 villa development on start of the project market was rising on completion market was falling. Something to consider when developing, very sobering, not everyone makes money when developing, and if it were easy everyone would be doing it. Moral of the story is to always manage your risk.

I ended up selling all my villas in 4 weeks, I decided to build higher specification for the area and buyers loved the end product so I achieved higher prices than I had expected. Another way to manage your risk, build better quality product than what your competition is building.

Hi PT
Many have offered good advice, one other I would consider before starting a development is market conditions?

If there is strong demand for your product today there are no guarantees this will be the case on completion.

Its out of your control, however I would consider ways you can reduce your risk if the market changed and you could not sell at the end of the project, ie can you afford to hold? can you sell any prior to completion (OTP)?, play in lower end market, easier to sell etc.
Review debt vs cash flow/income.

I had a recent scenario where my 3 villa development on start of the project market was rising on completion market was falling. Something to consider when developing, very sobering, not everyone makes money when developing, and if it were easy everyone would be doing it. Moral of the story is to always manage your risk.

I ended up selling all my villas in 4 weeks, I decided to build higher specification for the area and buyers loved the end product so I achieved higher prices than I had expected. Another way to manage your risk, build better quality product than what your competition is building.

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